California voters are set to decide on a one-time wealth tax on billionaires, a proposal former Reagan economic advisor Art Laffer warns could accelerate an exodus of the state’s wealthiest residents.
Laffer joined FOX Business’ Stuart Varney on "Varney & Co." to discuss California’s Proposition 40 and the broader push for wealth taxes.
Proposition 40 would impose a one-time tax equal to 5% of net worth on people who were California residents on Jan. 1, 2026, and had more than $1 billion in covered assets. Real estate, pensions and retirement accounts generally would be excluded. Ninety percent of the revenue would go toward healthcare, according to the state’s Legislative Analyst’s Office.
Laffer argued the measure could make California less attractive to people building and holding large fortunes.